Binance, the world’s largest cryptocurrency exchange Solana brush
-6.18%
The so-called BNSOL tool allows users to stake their SOL tokens to earn a portion of the fees paid by the network, while also minting liquid staking tokens that can be used while the underlying tokens are locked.
“Unlike basic staking that locks up assets, BNSOL is an ideal solution for those looking to maximize the potential of their staked Solana tokens by allowing users to unlock liquidity, enjoy continuous rewards accrual, and seamlessly engage with the Binance platform and the broader DeFi ecosystem,” Vishal Sacheendran, Head of Regional Markets at Binance, said in a statement.
The utility of the liquid BNSOL token ultimately depends on adoption in the Solana-based decentralized finance space.
Liquid staking tokens are a type of cryptocurrency that locks a user’s assets to a proof-of-stake blockchain, such as Solana or Ethereum, allowing them to be traded and used on DeFi platforms while the underlying collateral is locked.
Binance is currently programming the token with a “dynamic APR” that adjusts based on Solana staking payouts, accrued rewards, and a fee rate related to the value of B.NSOL for SOL. Users can redeem tokens according to the redemption waiting period.
Binance is expected to officially announce the launch of the protocol later this month.
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About the Author
Daniel Kuhn is a senior journalist and editor at The Block, covering the cryptocurrency industry with a particular focus on technology. He previously served as an associate editor at CoinDesk, where he covered the opinions/articles section. He was first published in the trade publication Financial Planning. Before pursuing journalism, he studied philosophy as an undergraduate, English literature as a graduate student, and business and economic reporting at NYU’s professional program. You can connect with him on Twitter and Telegram @danielgkuhn, or find him on Urbit as ~dorrys-lonreb.